February 13, 2007
Watchdog sent an open records request to the Mid-South Minority Business Council (MMBC) back on April 28, 2006 asking for open records information about salaries, benefits and especially about the Uniform Certification Agency, the function that they perform for the City of Memphis to identify and certify those firms that are minority or women owned businesses. This certification opens the doors to these M/WBE firms to bid on and obtain millions of dollars of public business contracts.
Watchdog received a prompt return letter from MMBC stating that they were not subject to the open records laws because they were a non profit organization. They referred the open records request to the law firm of Burch, Porter and Johnson.
Later in the year, due to various revelations concerning minority preferences and contracts, watchdog began investigating the activities and finances of the MMBC. It was found that the formation of the UCA activity was as a result of City Ordinance #4388 and the function of certification was given to the MMBC. Also we requested and got copies of monies furnished to the MMBC from the founding organizations, the City of Memphis, the MLGW, MATA, the MSCAA and TVA. This amounted to $1.9 million dollars over the period for which we were able to get records.
• MLGW $285,990.93 1995 to 2006
• TVA $975,885.00 1993 to 2006
• MSCAA $189,400.00 1999 to 2006
• City of Memphis $279,125.00 1993 to 2006
• MATA $180,200.00 2000 to 2007
• Total to date $1,910,600.93
Also we were able to get the 2004 and 2005 #990 IRS report (Return of Organization Exempt From Income Tax) and the 2004 report showed a net worth of $623,000 and $820,000 in 2005 a jump of almost $200,000 in one year. This seemed strange for a non-profit organization.
All of this convinced watchdog that MMBC was subject to the open records laws because they were apparently a quasi government organization and had received millions of dollars in public money. We therefore filed a lawsuit (pro se) in chancery court in October 2006. We were answered by Burch, Porter and Johnson by a motion for summary judgment to dismiss the case.
Watchdog, not being a lawyer, decided to hire one as we were unsure how to answer such a high powered legal maneuver. We did hire one and filed a cross motion for a summary judgment based on our facts and investigation. The case was set to be heard on February 13, 2007 but a week before the hearing, we were approached by Burch Porter and Johnson asking for a settlement. MMBC agreed to give watchdog the information concerning companies that have been approved for certification but refused to provide the same information concerning companies that were turned down for certification. They also offered to pay all legal costs for watchdog.
We agreed with the proposal but whether we will file another suit to obtain more detailed information, particularly concerning the firms that were turned down for approval, depends on how forthcoming and open the MMBC is with their records. What watchdog wants is open up the certification process so that the public is assured that all M/WBE firms are being treated fairly and to find out the criteria upon which these critical decisions are made.
Watchdog has no problem with the stated purpose of the MMBC. Our concern is that all of these critical decisions concerning who get access to minority based contracts be fair and open to the public and that the taxpaying public knows what this process is costing the taxpayers. Watchdog has turned up a number of minority contracts which have been no bid contracts and contracts where the minority bidder was up to 30% higher than the lowest and best bid. We cannot afford this kind of excessive spending with our tax money.
Click here to see the watchdog open records letter to the mmbc in april 2006
Click here to see the mmbc letter of rejection of the open records request
Click here to see the IRS 990 report for 2004 for the MMBC showing a net worth of over $600,000
Click here to see the IRS 990 report for 2005 for the MMBC showing an increase in the net worth of nearly $200,000 in just one year
Watchdog sent an open records request to the Mid-South Minority Business Council (MMBC) back on April 28, 2006 asking for open records information about salaries, benefits and especially about the Uniform Certification Agency, the function that they perform for the City of Memphis to identify and certify those firms that are minority or women owned businesses. This certification opens the doors to these M/WBE firms to bid on and obtain millions of dollars of public business contracts.
Watchdog received a prompt return letter from MMBC stating that they were not subject to the open records laws because they were a non profit organization. They referred the open records request to the law firm of Burch, Porter and Johnson.
Later in the year, due to various revelations concerning minority preferences and contracts, watchdog began investigating the activities and finances of the MMBC. It was found that the formation of the UCA activity was as a result of City Ordinance #4388 and the function of certification was given to the MMBC. Also we requested and got copies of monies furnished to the MMBC from the founding organizations, the City of Memphis, the MLGW, MATA, the MSCAA and TVA. This amounted to $1.9 million dollars over the period for which we were able to get records.
• MLGW $285,990.93 1995 to 2006
• TVA $975,885.00 1993 to 2006
• MSCAA $189,400.00 1999 to 2006
• City of Memphis $279,125.00 1993 to 2006
• MATA $180,200.00 2000 to 2007
• Total to date $1,910,600.93
Also we were able to get the 2004 and 2005 #990 IRS report (Return of Organization Exempt From Income Tax) and the 2004 report showed a net worth of $623,000 and $820,000 in 2005 a jump of almost $200,000 in one year. This seemed strange for a non-profit organization.
All of this convinced watchdog that MMBC was subject to the open records laws because they were apparently a quasi government organization and had received millions of dollars in public money. We therefore filed a lawsuit (pro se) in chancery court in October 2006. We were answered by Burch, Porter and Johnson by a motion for summary judgment to dismiss the case.
Watchdog, not being a lawyer, decided to hire one as we were unsure how to answer such a high powered legal maneuver. We did hire one and filed a cross motion for a summary judgment based on our facts and investigation. The case was set to be heard on February 13, 2007 but a week before the hearing, we were approached by Burch Porter and Johnson asking for a settlement. MMBC agreed to give watchdog the information concerning companies that have been approved for certification but refused to provide the same information concerning companies that were turned down for certification. They also offered to pay all legal costs for watchdog.
We agreed with the proposal but whether we will file another suit to obtain more detailed information, particularly concerning the firms that were turned down for approval, depends on how forthcoming and open the MMBC is with their records. What watchdog wants is open up the certification process so that the public is assured that all M/WBE firms are being treated fairly and to find out the criteria upon which these critical decisions are made.
Watchdog has no problem with the stated purpose of the MMBC. Our concern is that all of these critical decisions concerning who get access to minority based contracts be fair and open to the public and that the taxpaying public knows what this process is costing the taxpayers. Watchdog has turned up a number of minority contracts which have been no bid contracts and contracts where the minority bidder was up to 30% higher than the lowest and best bid. We cannot afford this kind of excessive spending with our tax money.
Click here to see the watchdog open records letter to the mmbc in april 2006
Click here to see the mmbc letter of rejection of the open records request
Click here to see the IRS 990 report for 2004 for the MMBC showing a net worth of over $600,000
Click here to see the IRS 990 report for 2005 for the MMBC showing an increase in the net worth of nearly $200,000 in just one year
posted by watchdog at
8:33 PM
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